Daily Market Highlights (07.12.11)

  • MSE Share Index drops 0.3% during this morning’s trading session to 3,090.482 points following declines in the share prices of GO and FIMBank. The other three active equities, namely HSBC, BOV and RS2, closed today’s session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged marginally higher to 981.08 points in line with the further retreat in Eurozone yields this morning. Following the successful bond auction by the German Government mid-morning, the eurozone benchmark yield dropped even further to around 2.12%. Markets now await tomorrow’s monthly monetary meetings of the European Central Bank and Bank of England as well as next Friday’s EU summit during which European leaders will seek to agree on a resolution for the region’s sovereign debt crisis.
  • Yesterday evening the Treasury published the statistics with respect to the first MGS Switch Auction comprising the voluntary exchange of the 5.7% MGS 2012 (III) into the new 4.3% MGS 2016 (IV). The Treasury accepted to exchange €159.9 million (nominal) of the 5.7% MGS 2012 (III) into €158.1 million (nom) 4.3% MGS 2016 (IV) with successful tender prices of the new 4.3% MGS 2016 (IV) ranging from a high of 105.25% to the cut-off price of 103.05%. Further details available here.
  • GO’s equity slipped 5% lower to the €0.95 level as investors weigh the implications of the outcome of Forthnet’s Extraordinary General Meeting scheduled to be held on 15 December. During this EGM, Forthnet’s shareholders will be asked to approve a number of changes to the company’s capital structure and a €30 million rights issue in line with the conditions of the latest €90 million bond loan. 20,500 GO shares changed hands today with further bids unsatisfied at the closing price and lowest offers at the €1.00 level.
  • FIMBank also closed in negative territory today as its share price slipped 3.9% to the US$0.74 level on volumes of 61,300 shares.
  • HSBC unchanged at the €2.58 level across two trades totalling over 4,400 shares. Other offers unsatisfied at the closing price whilst best bids placed at the €2.55 level.
  • Similarly, BOV maintained the €2.50 level also on low volumes of 1,716 shares. Further bids amounting to over 19,400 shares still outstanding at €2.50 with lowest offer at the €2.52 level ahead of the Bank’s Annual General Meeting scheduled for Friday 16 December. During the meeting, shareholders will be asked to approve a number of resolutions including the recommended final gross dividend of €0.08 per share and a 1 for 8 bonus share issue.
  • A further 20,000 RS2 shares were exchanged during this morning’s session at the €0.59 level, unchanged from the previous close. Lowest offers still in the market at €0.60.